Saudi: Arabian Mills to sell 30% stake in IPO and list on Tadawul

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Arabian Mills for Food Products Company has announced its intention to proceed with an initial public offering (IPO) of 30% of the firm’s issued share capital and list its ordinary shares on the Main Market of the Saudi Exchange (Tadawul).

On June 24, the Capital Market Authority (CMA) approved the company’s application for registering its shares and the offering of 15.39 million shares by way of a sale of existing shares by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company – Ajlan & Bros (Ajlan & Bros), Sulaiman Abdulaziz Al-Rajhi International Company, and The National Agricultural Development Company (NADEC). The final offer price of the offer shares will be determined at the end of the book-building period.

Ajlan Alajlan, Chairman, Arabian Mills, said: “Today we are one of the leading wheat and feed milling companies in Saudi Arabia. Our commitment to quality and excellence is resolute, enabling us to serve the Saudi community’s daily nutrition needs while contributing to the kingdom’s food security agenda.

Platform to invest and expand

“The decision to go public is a natural next step for Arabian Mills. It will provide us with the platform to invest and expand our production capacities and capabilities, and expand our product portfolio to meet the growing demand from KSA’s growing F&B and agribusiness while furthering our ambitions to embed sustainable practices at every step of the milling and distribution process. With the support of new shareholders, we aim to take Arabian Mills to new heights, driving growth and creating long-term value for all stakeholders.”

Rohit Chugh, Chief Executive Officer, Arabian Mills, added: “The decision to go public is a decisive one toward accelerating our growth trajectory. Since our privatisation in 2021, we have significantly scaled the business, increased profitability margins, and strengthened our market share. This was only made possible thanks to the efforts of our teams and the backing of our shareholders.

“Looking ahead, the growing market for flour, feed, and bran in the kingdom presents compelling opportunities, and we are well-positioned to capitalise on robust demand through continuous innovation and quality enhancements. Our focused strategy will deliver value and further our growth ambitions. We have a robust product pipeline, which includes the launch of new SKUs and variations tailored to meet diverse consumer needs and preferences, supported by an effective marketing and sales strategy. We are also expanding our presence in the kingdom by opening distribution centers in strategic locations to ensure we reach more customers more efficiently. To support our expansion plans, we are constantly enhancing our operations to optimise utilisation, minimise downtime and enhance our margins.

Higher standards

“By going public, we are also committing to higher standards of transparency and corporate governance, which we believe will ultimately benefit our shareholders and other stakeholders alike. This IPO is a catalyst for Arabian Mills to achieve sustainable, long-term growth and to continue our purpose of driving milling excellence and delivering nutrition.”

With respect to the offering, the company has appointed HSBC Saudi Arabia as Financial Advisor, Global Coordinator, Bookrunner, Underwriter, and Lead Manager. Alrajhi Bank, Saudi Awwal Bank (SAB) and Banque Saudi Fransi have been appointed as receiving agents for retail investors.-